Wedbush Remains Bullish on Buffalo Wild Wings (BWLD) After Updating Model For Lower Wing Costs

Wedbush maintained an Outperform rating and $180.00 price target on Buffalo Wild Wings (NASDAQ: BWLD) after updating model for lower wing costs. An analysis of Urner Barry wing costs indicates wing prices have declined ~$0.30/lb over the past month. Wedbush lowered Q2 wing cost assumptions to $1.91/lb from $1.93/lb, but now models $1.80/lb in Q3 and $1.95 in Q4 from $1.85 and 2.00, respectively. Every $0.10/lb decline in wings equates to $0.30 EPS annualized relative to current 2017 estimates.

Analyst Nick Setyan commented, "We expect food cost tailwinds, non-COGS expense management, and 2H:16 comp outperformance relative to lowered expectations to result in upward EPS revisions as 2016 progresses."

For an analyst ratings summary and ratings history on Buffalo Wild Wings, Inc. click here. For more ratings news on Buffalo Wild Wings, Inc. click here.

Shares of Buffalo Wild Wings, Inc. closed at $147.34 yesterday.

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